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URL:  http://boards.fool.com/retirement-advice-for-novice-10047530.aspx

Subject:  Retirement advice for novice Date:  10/29/1997  11:50 AM
Author:  CUtiger Number:  548 of 76384

In my begining down the Foolish path, I seem to have stumbled and need a little help......I graduating college and have just made aware that I have about $5,000 in bonds that I can cash in. This year I made probably $10,000 however I have accepted a job begining in Jan. in which
I will make $41,500.

Now, I want to put $2,000 into a Roth IRA next month, and another $2,000 on Jan. 1st. Only problem - Roth IRA's aren't available until Jan 1,1998 (my understanding). How do I get the $2k in for this year ? My guess is a deductible IRA this year that will roll over to a Roth in
Jan. Only problem, my tax rate is a lot lower this year than what it will be next year (for conversion (rollover)).

Next, my company (Sonoco Products - SON) has a 401k plan in which you can invest up to 15% of your salary in a choice of 5 mutual funds or Sonoco stock. If you invest in Sonoco stock, they match the first 6% of my salary by 50%. I think its a good idea to put 6% in and get 3% free but beyond that I am not sure whether to put the rest in a regular brokerage acct (w/foolish 4) or put the additional 9% in the 401k. I am not sure if tax break is worth it. Any advice ?

Thank you so much for taking time to read this, if you could point me in the right direction I would appreciate it !

Justin Sandler (a young Fool)
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